The collective investment scheme is basically an investment in which more than one individual can invest and get profit and revenues from it. Although the difference in a collective investment scheme from any other investment is that usually, the individuals who are investing in something have the power to control whatever they invested, but in this case, the property is not under the control of the people who invested it. Instead, some other individual controls or manages the property.
This might seem risky to some people and the first thing that comes to mind when you hear about this scheme is that you might go bankrupt or it is probably a fraud or scam. Well before making any decision you should get a consultation from your local bankruptcy lawyer. This way you will have confidence while investing and you can make the right choice, although do make sure that you are aware of all the litigations that are involved with the collective investment scheme.
Once you are completely sure only then should you invest in something. In the collective investment scheme, any revenue generated from the properties that are invested is pooled which is why the collective investment scheme ( CIS ) is also known as a pooled investment.
Make sure that whenever you do invest in such a scheme it is licensed, this will ensure that you do not get yourself involved in a scam. The licensing should be registered from the Public Register of Licensed Persons and Registered Institutions. Do not believe only on words verify it yourself whether or not the company is licensed as it could cost you gravely if it turns out to be a scam, always consult your lawyer regarding such matters.